FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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RR Records Inc. acquired all of DD Studios’ voting shares on January 1, 20x1, for P280,000. RR’s
Compute the balance of Goodwill to be reported in the consolidated balance sheet immediately after the acquisition.
Transcribed Image Text:Image 1
RR Records, Inc.
Balance Sheet
January 1, 20x4
P120,000 Accounts Payable
110,000 Taxes Payable
70,000 Notes Payable
350,000
280,000 Retained Earnings
P930.000
P 75,000
50,000
Cash and Receivables .
Inventory..
Land.
Buildings and Equipment (net).
Investment in DD stock..
300,000
400,000
Common Stock.
105,000
P930.000
Image 2+
DD Studios
Balance Sheet
January 1, 20x4
P 40,000 Accounts Payable
180,000 Notes Payable.
350,000 Common Stock.
30,000 Additional Paid- in Capital ..
P 90,000
250,000
Cash and Receivables.
Inventory ..
Buildings and Equipment (net).
Goodwill .
100,000
200,000
(40,000)
Retained Earnings.
P600.000
P600.000
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